Trading Places with Tom Bowley

Abbreviated Holiday Session Results In More Records

Market Recap for Friday, November 24, 2017

Wall Street was only open for half a day on Friday, but that didn't stop the bulls' momentum as all the major indices closed at fresh all-time highs.  Amazon.com (AMZN) and a host of semiconductor stocks led the advance as the NASDAQ slightly outperformed the other indices.  Technology (XLK, +0.56%) and materials (XLB, +0.51%) were the best performing sectors, while consumer staples (-0.07%) and financials (XLF, -0.04%) lagged.

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The Superfecta: All Four Major Indices Print All-Time Record Highs

Market Recap for Tuesday, November 21, 2017

I am traveling for the Thanksgiving Day holiday, so today's article will be brief.  I hope everyone has a very Happy Thanksgiving!  Enjoy your family and friends and please be safe.  :-)

It was a very bullish day on Wall Street yesterday.  Not only did we see all four of our major indices climb to touch all-time highs on an intraday basis, but they also closed there.  In addition, all nine sectors advanced on the session.  That is typically a sign of new money driving prices higher, a bullish development indeed.  Should the 10 year treasury yield ($TNX) move above its triangle resistance (see Current Outlook section), that would provide another catalyst to take U.S. equities higher.

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Financials And Industrials Lead As Slowing Momentum Issues Subside

Market Recap for Monday, November 20, 2017

It had been awhile since financials (XLF, +0.46%) and industrials (XLI, +0.45%) were the top two performing sectors during a market session, but that's exactly what we saw on Monday.  Welcome back!  Both the XLF and XLI had serious momentum issues to deal with on their daily charts as they made their recent price highs.  But profit taking and market rotation took care of that and both of these groups now appear poised to rejoin the bull market party.

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Friday: The Tale Of Two Markets

Market Recap for Friday, November 17, 2017

It was an interesting day on Friday.  While most of our major indices struggled and finished in negative territory with the Dow Jones, S&P 500 and NASDAQ falling 0.43%, 0.26% and 0.15%, respectively, the Russell 2000 continued its torrid advance of late, rising another 0.40%.  The Russell 2000 had lagged the other major indices quite significantly from early October through last Tuesday, but it reversed just as it approached key price, moving average and Fibonacci support at 1450 on Wednesday.  It then embarked on a three day advance where, at its high on Friday, had rebounded nearly 3%.  The S&P 500, by contrast, had risen by less than 1%.

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Russell 2000 Soars After Nearing Initial Fibonacci Retracement Level

Market Recap for Thursday, November 16, 2017

U.S. indices spiked sharply higher on Thursday's open in contrast to many recent days where the bulls have found themselves underwater in early action, trying to reclaim control of the action throughout the balance of the session.  Yesterday, there wasn't a battle.  The bulls won decidedly and with one day of solid gains, the benchmark S&P 500 is within earshot of 2600 and another all-time high.  But the big winner among the major indices was the Russell 2000 ($RUT, +1.56%), whose swift march higher reversed several days' worth of selling.  While the NASDAQ's gain of 1.30% resulted in a fresh all-time high close, technically the RUT's big day was more impressive because it held on to a very critical support level before its big rise:

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Selling Grips Wall Street, Key Moving Average Lost

Market Recap for Wednesday, November 15, 2017

Eight of nine sectors lost ground on Wednesday and while that, along with a couple major indices closing beneath their respective 20 day EMAs, might be cause for concern, I actually thought much of the action was bullish.  First and foremost, the tech-heavy NASDAQ was able to rally enough in the afternoon to end with a kick save, printing a reversing candle in the process:

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Technology Weakening, But How Much Selling Might We Expect?

Market Recap for Tuesday, November 14, 2017

For the third time in the last four days, we saw U.S. equities gap lower, only to reverse intraday to close near their highs of the session.  It's still resulted in losses for the day, but it also shows the bull market resiliency that the bears are facing as they try to grab control of the near-term action.  We're seeing fairly significant red futures once again this morning so the bulls will once again attempt to reclaim support by day's end.

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Industrials Are Teaching Us How To Evaluate Risk....If We'll Listen

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Market Recap for Monday, November 13, 2017

Monday marked more rotation from the overbought and momentum-challenged aggressive sectors to the more defensive-oriented groups.  The current short-term rotation as the benchmark S&P 500 consolidates to work off its own overbought issues should not be interpreted as a bearish development.  However, continuing relative strength in defensive sectors to accompany the next S&P 500 breakout would begin to paint a much more cautious picture so we'll need to keep that on our radar.

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Consumer Staples Finish Off Strong Week, Hold Trendline Support

Market Recap for Friday, November 10, 2017

Generally speaking, I'm not a big fan of defensive areas leading the market to the upside.  But I'll make an exception for last week.  Consumer staples (XLP, +1.02%) was not only the clear leader on Friday, but it's weekly gain of 2.15% also easily vaulted the XLP into a leadership role for the week.  Why was the XLP's strength last week so important?  Well, first take a look at the weekly chart:

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Early Losses Result In Successful Moving Average Tests; Overbought Conditions Unwinding

Market Recap for Thursday, November 9, 2017

Energy (XLE, +0.30%) returned to the top of the leaderboard and this is what's likely to irritate the bears in the future.  We now have another sector that's technical capable to take on new money as money rotates elsewhere.  It's the beauty of a bull market.  Wide participation means a lot of choices.  The problems begin when breakdowns occur in several areas and money can't find a new technical home.  Consumer discretionary (XLY, +0.15%) also had a solid day considering the overall market weakness as its recent breakout is also encouraging buyers - even on down market days.

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